Definition: A series of escalated diplomatic and economic conflicts centering around a feud between the U.S.A. and the USSR.

Background (after WWII):

• Most governments such as Germany, Italy, and France are in chaos with leaders dead and societies disrupted; however, the Netherlands, Belgium, Scandinavian countries, and Britain were less heavily impacted and faired better during this post-war era.

• For the countries that were heavily impacted, the idea of communism becomes appealing due to its ideas of equality and access to resources (which countries desperately sought for).

• Distrust is prevalent among the Allies as U.S. and Britain fear Communism, and Russia believes the West wants to destroy communism.

The Yalta Agreement (February 1945)

• Meeting takes place in Yalta, Southern Soviet Union

• The Big Three (Churchill, Roosevelt, Stalin) meet to divide Europe into 4 zones of occupation

• "Declaration of Liberated Europe"-- Stalin agrees to have free elections in Soviet zone (yet Churchill is suspicious)

• Stalin agrees to enter in war against Japan to gain territory from Asia as promised

Postdam Conference (July 1945)

• They discuss how to deal with the German economy, punishment for war criminals, land boundaries, and reparations

• Meeting becomes tenser as Truman joins the Big Three, Stalins gets sneaky, and all have knowledge of U.S. atomic bomb (fearful)

• Truman presses Stalin for free elections as previously discussed yet he refuses (in fear of anti-Soviet governments rising)

• All issue a declaration demanding "unconditional surrender" from Japan

• Division of Germany occurs (4 zones)

  • US, UK, and France form West Germany, holding free elections there

  • USSR has East Prussia and Berlin (East Germany) in which they "elect" puppet governments to hold power

Additional information:

• Establishment of Communist Government in Eastern Europe

• Stalin backs Communist rebels in Greece and Turkey

->leads to the formation of U.S. policies

U.S. Policies

Truman Doctrine --- President Truman presents a policy to Congress which roots in the containment of limiting the spread of communism to areas under Soviet control.

• originates from the Domino Theory (1950s) in that if one country "falls" to communism will lead to a chain effect in nearby countries (could happen as most countries are struggling from WWII).

• intended to support the people in areas susceptible to communist regimes

• Through this doctrine, aid was sent to Greece and Turkey

• Led American policy for years as wanted to resist Soviet (communism) expansion

Marshall Plan -- to create an economically strong Europe and ultimately avoid a second Versailles (massive inflation in Germany)

• was created by the Secretary of State, George Marshall and it involved $13 billion (5% of GDP) to rebuild Western Europe (Britain, France, and West Germany)

• Also, with famine, disease, and poverty prevalent in post-war Europe creates the perfect conditions for the spread of communist ideas

• U.S. had wanted to add more money yet USSR prevented it

In addition, the Allies proposed to replace the Reichsmark to re-stabilize Germany's economy (as they had been experiencing huge inflation)

-> Stalin opposes idea (wanted to maintain Germany weak) and in response sets up a mini-blockade with all imports from trains searched by troops

Yet the Allies continue forward with the plan, Stalin creates a blockade on June 24th, 1948.

1949: Truman and the Allies respond with an airlift to bring resources (food, coal, and gas) to German citizens over the next year, known as the Berlin Airlift. It's able to work as the Allies in 1945 had signed an agreement on air routes and open access to Berlin.

-> USSR backs down and stops the blockade on April 15, 1949

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As "elections" have been held in Eastern Europe where opposing communist parties were outlawed led to the formation of NATO (North Atlantic Treaty Organization) by the U.S. It forged a military alliance between the U.S. and its partners (in Western Europe).

In response, it led the USSR to gather its states under the name, Warsaw Pact, in 1955

-> This officially creates the division of Europe into "Eastern" (Warsaw Pact) and "Western" (NATO) blocs

August 29th, 1949: The USSR detonates their first test atomic bomb, surprising the U.S. as they falsely assumed they were behind

-> leads to the possession of 2 nuclear powers with two world powers and begins the arms race